Mediacom Communications Corporation

About Mediacom Communications Corporation

The media in Mediacom is definitely the plural use of the word. The company offers cable, internet, and digital phone service throughout smaller markets in 22 mostly Midwestern and Southern states. Its core markets include areas in Georgia, Illinois, Iowa, Minnesota, and Missouri. Mediacom serves residential and small to midsized business customers. The company operates through Mediacom LLC and Mediacom Broadband. Together the subsidiaries count some 890,000 video customers, more than a million high-speed data (HSD) customers, and 400,000 phone customers. It also sells advertising time to local, regional and national advertisers.

Operations

Mediacom is uniquely positioned in that it mainly competes with satellite providers for TV customers, but DIRECTV and DISH Network are unable to provide phone service over their network. Comcast and Time Warner Cable, the nation's top two cable companies, do not operate in Iowa, which has allowed Mediacom to flourish in the Hawkeye State. Video accounts for about 50% of the company's revenue, followed by HSD with 29%, business services at 11%, phone, 7%, and advertising, 4%.

Geographic Reach

The company provides services to 1,500 communities in 22 US states, including in Georgia, Florida, Illinois, Iowa, and Missouri.

Sales and Marketing

Residential customers may either pay for service on a month-to-month basis or sign a contract to obtain more favorable rates. The company services about 1.3 customers.

Financial Performance

Overall sales Mediacom LLC and Mediacom Broadband totaled $1.66 billion in 2014, a 3% boost from 2013. The company saw 7% growth in HSD services and 13% growth in business services. Advertising added another shot with a 12% revenue increase. The growth in HSD came additional residential customers and customers subscribing to higher-speed tiers. The company also gained in cell tower backhaul revenue. Video revenue declined from losses in the number of residential customers. Phone revenue fell 4% in 2014.

Strategy

One of the 10 largest cable companies, Mediacom focuses on smaller markets but still aims to provide the same services as a larger provider. It offers more than 100 HD channels, DVR service, and in 2014 it began offering home security services under the Mediacom Home Controller brand. In 2015, Mediacom renewed its distribution agreement for carriage of Viacom's media networks across Mediacom's subscriber base. It also provides service calls on weekend and evening hours, so customers don't have to do the dreaded wait for the cable guy.

Amidst a certain amount of turmoil in the cable industry with a number of acquisitions in the past year, Mediacom keeps chugging along in its smaller market. It could be, however, an acquisition target for a larger player looking to knit together a larger network across the US. Mediacom also could be hurt by its lack wireless service. The wired telephone business is declining as more people move to their wireless phones. The company's fiber optic cable enables it to compete against larger carriers in offering the highest speeds for Internet service in some markets.